Larry Ellison and family face $9.8B risk from Paramount deal
Business
Oracle co-founder Larry Ellison and his family are staring at a possible $9.8 billion loss if Paramount's plan to buy Warner Bros. Discovery doesn't happen.
The deal is now caught up in regulatory hurdles, and Paramount has promised Warner Bros.' shareholders a massive $7 billion breakup fee if things go south.
Ellison would pay $9.8B with shares
If the merger collapses, Ellison (and a family trust) would have to cover that $7 billion fee for Paramount, plus another $2.8 billion Paramount already paid Netflix to step aside from bidding on Warner Bros.
Ellison would pay that $9.8 billion by purchasing new shares, but with lawsuits piling up, it's a risky situation all around.